No relief from inflation, SBI has projected it to be around 5 percent in FY25

The general public is expecting a softening in inflation. The State Bank of India (SBI) has released a research report on the inflation rate in the country. According to this report, at present the general public will not get relief from inflation. The inflation rate may remain around 5 percent in the current financial year 2024-25. However, there is hope of getting slight relief from inflation in September and October.

The focus of the Reserve Bank of India (RBI) is on controlling the inflation rate in the country. In June, the CPI i.e. Consumer Price Index (CPI) was 5.08 percent. Inflation is rising due to the rise in food prices.

Inflation is expected to remain around 5 percent in the coming months. Inflation may fall in September 2024 and October 2024.

According to the SBI report, food items also became expensive due to the monsoon. Due to heavy rains, the crop was destroyed and the rain also affected transportation. However, the current monsoon is quite satisfactory. So far the monsoon is progressing with a surplus of 2 percent. 2.9 percent progress is also being seen in the field of Kharif crops. In such a situation, it is expected that inflation will remain within the RBI target in FY 2025.

The monetary policy review meeting of the Reserve Bank of India will start on 6 August 2024. Apart from the repo rate, many other decisions will also be taken in this meeting. In such a situation, it is expected that the central bank may decide not to change the repo rate to achieve inflation targets and support sustainable economic growth. The decisions taken in the RBI MPC meeting will be announced on 8 August 2024.